Bandimere v. SEC
United States Court of Appeals for the Tenth Circuit
844 F.3d 1168 (2016)
The SEC (defendant) brought an enforcement action against David Bandimere (plaintiff) that was tried before an SEC administrative law judge (ALJ), who found him liable, a decision the full Commission affirmed. Bandimere petitioned for review, arguing the ALJ was an inferior officer under the Appointments Clause who had not been properly appointed by the President, a court, or a department head. SEC ALJs' positions, duties, salary, and appointment method are all set by statute, and ALJs take testimony, rule on evidence, conduct hearings, and decide liability, with authority to do "all things necessary and appropriate" to their duties, subject to review by the full Commission.
Whether SEC administrative law judges are inferior officers under the Appointments Clause who must be appointed by the President, a court of law, or a department head.